Wednesday, March 18, 2015

Greek Finance Minister Calls for a 'United Sates of Europe'

Over the weekend, the "libertarian socialist", Greek finance minister Yanis Varoufakis, showed all of us just what "libertarian socialism' is all about.  During a speech at the Ambrosetti Conference in Lake Como, he called for  a European New Deal and  government programs that span across the eurozone:
In short, while the ECB is doing its best within the parameters it has been given, its ‘best’ is unlikely to be good enough. Something else is needed...

The idea is to Europeanise three or four basic realms of our political economies: Europeanise the banking sector, Europeanise a portion of the public debt, Europeanise aggregate investments (through the European Investment Bank and in association with the European Central Bank) and, finally, Europeanise a hunger and poverty alleviation program....

Europe’s future will be bright to the extent that we manage to use the euro crisis as an opportunity to bring about a United States of Europe...

Today I came to this fine venue to argue that what Europe needs is a solution to the current crisis that utilises, and re-deploys, existing institutions smartly and within the letter of current Treaties and rules. I have presented one example of how this can be accomplished in the realm of aggregate, pan-European investment. The proposal for an EIB-ECB partnership (where the ECB performs QE by purchasing EIB-bonds in support of a large-scale investment-led recovery program) demonstrates precisely how Europe can mobilise existing institutions (in this case the EIB and the ECB), Europeanise aggregate investment, and lead to recovery without any need for Germany to pay for this program or for the productive investments that will flow into the deficit nations.

Come to think of it, what we have here is the potential for simulating a European New Deal without the need for a federal treasury, for any type of fiscal transfers, or for any new institution.
Yup, nothing is needed from anyone. It's Keynesianism on a Greek carpet ride. Just print the money and spread it across the entire eurozone, for programs similar to those that have crushed the Greek economy.



  1. Ok, tell me that if he was painted in red and had the tip of his nose cut off he wouldn't look like "Red Skull".

  2. What I find interesting is that he is specifically advocating QE, when it is long since established, even by the Fed itself, that QE doesn't accomplish anything but funnel other peoples' savings to banksters.

    Not only is he not a libertarian, he's not a Marxist, either. Just another dishonest Keynesian crony.

  3. "Europe’s future will be bright to the extent that we manage to use the euro crisis as an opportunity..."

    Sounds just like Rahm Emanuel:

  4. A common fiat money was established for just this purpose. The countries will be united - and all that that implies (Eurasia).

  5. "...Herbert W. Armstrong...Paging Herbert W. Armstrong..."

  6. If there is a United States of Europe, do we get to see the German version of Abraham Lincoln?